Taxes Consolidation Act 1997 section 83

Expenses of management of investment companies

Section 83 deals with the deduction of management expenses incurred by investment companies when computing their profits for corporation tax purposes.

• An investment company is one whose business consists wholly or mainly of making investments and whose principal income derives from investments; savings banks are specifically included.
• Management expenses (including commissions) are deductible from total profits, but not where already deducted against rental income (Case V of Schedule D), and the deduction must be reduced by any income from sources not charged to tax (other than franked investment income).
• Where management expenses and charges on income exceed the profits from which they are deductible, the excess carries forward to the next accounting period and is treated as management expenses of that period.
• Management expenses include lump sum redundancy payments under the Redundancy Payments Act 1967 and employer contributions to approved superannuation schemes.